KSE-100 Index
The Pakistan Stock Exchange (PSX) staged a dramatic recovery on the second trading day of the week, with the benchmark KSE-100 Index rebounding sharply by more than 4,300 points to close at 120,500. This significant gain comes just a day after the index suffered one of its steepest single-day declines in recent months.
On Monday, the KSE-100 plunged by 3,855 points, ending the session at 116,167. The massive sell-off was largely driven by intensifying geopolitical tensions in the region, following a US missile strike on Iran that rattled global markets and sparked a wave of investor panic.
The sharp drop led to the loss of four crucial psychological thresholds — 120,000, 119,000, 118,000, and 117,000 — all in one trading session.
However, the market staged a robust comeback on Tuesday, buoyed by a shift in sentiment as fears of a prolonged regional conflict began to subside. Market analysts noted that reassurances from global actors, along with calls for restraint and de-escalation, played a key role in calming investor nerves and restoring confidence.
The strong rally was accompanied by a notable increase in trading volumes, indicating renewed participation by both institutional and retail investors. Market capitalization also saw a substantial rise, reflecting the return of optimism among stakeholders.
According to analysts, the rebound suggests that investors are responding to the easing of immediate geopolitical risks and reassessing the market’s fundamentals.
The KSE-100’s ability to regain lost ground so swiftly is being viewed as a sign of resilience, with several sectors posting strong gains throughout the session.
Financial experts emphasize that while volatility may continue amid evolving regional developments, Tuesday’s surge signals a rebalancing of investor sentiment and the underlying strength of the market.
The performance also highlights the sensitivity of Pakistan’s equity markets to external shocks, especially in light of geopolitical developments that can rapidly shift risk perceptions.
Overall, the PSX’s remarkable turnaround reflects cautious optimism, as investors once again seek opportunities in a market that had briefly faltered under the weight of uncertainty.
